Solved

Answer the Question on the Basis of the Following Data

Question 141

Multiple Choice

Answer the question on the basis of the following data:  After-Tax Income Consumption $1,000$9002,0001,8003,0002,7004,0003,6005,0004,500\begin{array}{cc}\underline{\text { After-Tax Income} } &\underline{ \text { Consumption }} \\\$ 1,000 & \$ 900 \\2,000 & 1,800 \\3,000 & 2,700 \\4,000 & 3,600 \\5,000 & 4,500\end{array} The data suggest that:


A) a policy of tax reduction will increase consumption.
B) a policy of tax increases will increase consumption.
C) tax changes will have no impact on consumption.
D) after-tax income should be lowered to increase consumption.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions